What I just sent to my congressman:
Hi Patrick,
We met briefly during your campaign at Big Apple Pizza and my wife and I supported your candidacy both by action and financially.
Recently, we took delivery of our second Tesla Model S. This is an all electric sedan that carries 5 adults + 2 children 300 miles and can be recharged for another 300 miles in as little as 20 minutes. It is built in Fremont California by Tesla Motors which is a public company (TSLA). Tesla recently paid back its 465 million dollar loan from the DOE ATVM program 9 years early and at a profit to tax payers.
Tesla has a unique marketing strategy in that it has no franchise agreements to sell their vehicles. As a matter of fact, we had the pleasure of buying our 2 vehicles simply by ordering them on the Internet and they were delivered to our house. Tesla also has a different business model in that very little in the way of servicing the vehicle mechanically has to be done. In fact Elon Musk, the company CEO, has directed that the service portion of the business NOT to be a profit center.
So why all of this information? Currently, many states have regulations that REQUIRE vehicles only to be sold through a dealer, making direct sales from the manufacturer illegal. Of course these laws stem from the outdated notion of protecting the mom and pop corner car dealer of years past from being crushed by the giant auto manufacter opening up a "factory" store and to assure consumers had a place to have their automobiles serviced. All relavent 50 years ago. Now, a large number of dealers are nothing more than large corporations themselves dedicated to the "sell Em cheap and make it up in service " business model. Of course they want to protect their money making machines. The NADA is actively involved in supporting legislation not only to extend these kinds of anticapitalist anticonsumer and competition stifling laws, they are looking to make it illegal for a company to sell product via the Internet as well. (North Carolina)
Clearly, these efforts fly in the face of the interstate commerce clause of the constitution as well as the Sherman antitrust act amongst other laws designed to thwart anticompetitive and monopolistic practices. These are the kinds of practices that crush the American middle class consumer economic engine and ultimately, stifle inovation, economic growth and prosperity.
I am asking that you ask the FTC and DOJ look into both the existing and proposed state laws that have been and are being written right now. The NADA says it is acting to protect the consumer which is just pure hyperbole. If anything the BBB will tell you more about protecting consumers from auto dealer practices than dealers protecting consumer interests. I understand the various auto dealer associations garner an inordinate level of influence in various legislative bodies via lobbying and financial support of campaigns. These practices have truly perverted our democratic process that we all value and for which so many have given so much for to preserve for our children.
I would love to give you and your staff the opportunity to see and drive the Tesla Model S so you can speak with your peers on the subject from first hand knowledge. This is truly a paradigm shift (think Henry Ford and Model T) for personal transportation in the making as well as a shining example of business working with government that results in regaining of American leadership in technology and inovation that has lead directly to producing durable goods and jobs which necessarily is resulting in economic benefit and the rebuilding a strong middle class in our country.
If you are interested I would be happy to bring the Model S to you and speak with you further on the subject and have you drive the vehicle first hand at your convenience.
Thanx in advance,
Dave Israel
Constituent